CIT Stays DOJ Response to Amicus Brief in Case of Forced Labor in Palm Oil Shipment

The Court of International Trade stayed the deadline for DOJ's response to an amicus brief filed by the American Apparel and Footwear Association in a lawsuit on a seized shipment of palm oil over forced labor concerns. The palm oil shipment was entered by importer Virtus Nutrition and was excluded from entry by CBP over suspicions that the goods were made in Malaysia by forced labor (Virtus Nutrition v. United States, CIT #21-00165).

CBP had excluded the imports of palm fatty acid distillate and palm stearin while it examines Virtus' supply chain for signs of forced labor (see 2105130055). The products were held under a withhold release order that bars the entry of palm oil products made in Malaysia by Sime Darby Plantation Bhd. AAFA's amicus brief that argued that CBP's enforcement of forced labor-related WROs is marred by due process violations, an unreasonable standard of evidence, arbitrary decisions and an absence of transparency (see 2108260048).

DOJ recently filed a consent motion to stay its response to the amicus brief since it is clear that the case will "likely not proceed on the merits." As such, there's no need to respond to AAFA's brief. DOJ said the case will likely be resolved without further litigation since Virtus plans to export the palm oil. Most recently, the court held a teleconference where counsel for Virtus said that modifications of the port where the palm oil is being stored were just completed and that the Environmental Protection Agency next has to inspect the modifications. Once these steps are complete, the palm oil will be exported. In the stay order, CIT said that DOJ's response to AAFA's brief is stayed and that the parties shall file a joint status report by May 6 to assess the state of the case.